Introduction to 401(k) Retirement Contributions on Pay Stubs

401(k) Retirement Contributions on Pay Stubs are key for tracking contributions, employer matches, and take-home pay. Understanding them ensures payroll accuracy, contribution compliance, and tax-efficient financial planning.

In this 2025 guide, you’ll learn where 401(k) items appear on your pay stub, differences between Traditional and Roth contributions, 2025 limits, and employer matches. For generating professional stubs, use a pay stub generator. For background, see retirement benefit basics.

Where 401(k) Items Appear on a Pay Stub

Retirement contributions are usually under deductions or benefits, showing current and YTD totals. Look for labels like “401(k),” “401K-Roth,” “401K-Pre-Tax,” or plan provider name.

• Employee 401(k) deduction (current/YTD): Contribution for this pay period and cumulative total.
• Employer match (current/YTD): Company contribution added on top of wages.
• Traditional vs. Roth indicator: Stubs may separate “401K-Pre” (pretax) and “401K-Roth” (after-tax).
• Taxable wages after pretax deductions: Shows how Traditional contributions lower taxable income.

Traditional vs. Roth 401(k): What Your Stub Shows

Traditional 401(k) (Pretax)

Contributions reduce taxable wages, lowering current income taxes. Growth is tax-deferred; withdrawals taxed as ordinary income. Pay stub shows lower taxable wages if Traditional contributions exist.

Roth 401(k) (After-Tax)

Contributions do not reduce taxable wages. Taxes are paid upfront; qualified withdrawals are tax-free. Roth lines appear as after-tax deductions and do not reduce taxable wages.

Plans may allow split contributions. Each line shows current and YTD totals.

401(k) Contribution Limits for 2025

Tracking limits ensures compliance and maximizes tax benefits:

• Employee contribution limit: $23,000 (Traditional + Roth)
• Catch-up (50+): Additional $7,500
• Total limit incl. employer match: $69,000 ($76,500 with catch-up)

Use YTD totals to avoid exceeding caps. Calculate contributions via tools like a pay stub generator.

Employer Match: How It’s Displayed on Pay Stubs

Employer matches are free money. Example: 50% match on first 6% contributed. Shown on stub under “Company 401(k)” or “Employer Match” with current/YTD totals.

Example: Earn $4,000, contribute 5% ($200). Employer matches 3% ($120). Stub shows:

• 401(k) Employee Contribution (Current): $200 | YTD cumulative
• 401(k) Employer Match (Current): $120 | YTD cumulative
• Taxable Wages (Current): $3,800 if Traditional; $4,000 if Roth

Taxes: What Changes on Your Pay Stub

• Traditional 401(k): Lowers taxable wages, reducing federal/state tax withholding.
• Roth 401(k): Does not lower taxable wages; taxes paid upfront.
• FICA: Not reduced; based on gross pay.

See payroll tax breakdowns for more.

Common Pay Stub Issues and Fixes

• Wrong deduction percentage: Check payroll election; notify HR.
• Missing employer match: Verify eligibility/vesting.
• Mislabeled type: Correct to avoid reporting errors.
• Incorrect YTD totals: Compare prior stubs or request audit.

Self-Employed or Managing Payroll?

Self-employed or small team payroll can display 401(k) Retirement Contributions accurately using a professional pay stub generator with current and YTD tracking.

Conclusion: Stay Confident About Your 401(k) Pay Stub

Understanding 401(k) Retirement Contributions on Pay Stubs ensures contributions and employer matches are correct and taxable wages align with plan type. Use a pay stub generator and explore financial planning for employees to strengthen your 401(k) strategy for 2025 and beyond.